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Annual report April 1, 2019 to March 31, 2020 Yukon Liquor Corporation

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Page 1: Annual report - Yukon · 2020. 10. 13. · In 2019/20, the Yukon Liquor Corporation worked hard to support the growth of the legal, non-medical cannabis market in Yukon. The territory’s

Annual reportApril 1, 2019 to March 31, 2020

Yukon Liquor Corporation

Page 2: Annual report - Yukon · 2020. 10. 13. · In 2019/20, the Yukon Liquor Corporation worked hard to support the growth of the legal, non-medical cannabis market in Yukon. The territory’s

ISSN 2562-7643 (Print) ISSN 2562-7651 (Online)

Photos: Archbould Photography

Page 3: Annual report - Yukon · 2020. 10. 13. · In 2019/20, the Yukon Liquor Corporation worked hard to support the growth of the legal, non-medical cannabis market in Yukon. The territory’s

Introduction Minister’s message ................................................................................... 2 Letter of transmittal ................................................................................. 3

Timeline ................................................................................................ 4

Our vision, mission and values .................................... 5

Annual reporting ........................................................................ 6

About the Cannabis Licensing Board .................. 7

Organizational structure Corporate Services ................................................................................ 8

Operations Purchasing and logistics ...................................................................... 9 Sales and distribution ........................................................................... 9 Warehouse operations ......................................................................... 9 Health and safety ................................................................................... 9

Regulatory Services ................................................................. 9

Business overview ...................................................................10 Operating expenses ............................................................................11

Reduction of the illicit market ....................................12

Social responsibility Responsible consumption initiatives in 2019/20 ..........................13 Health initiatives ......................................................................................14 Health and Social Services Report ....................................................14 5-year review ...........................................................................................14

Future outlook .............................................................................15

Yukon Department of Health and Social Services Report on Cannabis ....................16

Statement of financial results ....................................25

Table of contents

Yukon Liquor Corporation cannabis annual report 2019/20 1

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Hon. John Streicker Minister responsible for Yukon Liquor Corporation

Minister’s messageI am pleased to present the Yukon Liquor Corporation’s 2019/20 Cannabis Annual Report. The Yukon continues to lead in private retail and displacing the black market. This past year has brought more changes in the journey of legalization – with the first private retail licence issued in April 2019, the closure of the Corporation’s Cannabis Yukon store, and cannabis extracts, topicals and edibles becoming legal in October of the same year. I would like to thank the Yukon Liquor Corporation staff and the Cannabis Licensing Board for their commitment in preparing for and successfully working through these changes.

The main goals of our legislation are to displace the illicit trade in cannabis, and to protect public health and safety with a focus on youth. Through the Act, we determined how cannabis would be distributed and sold in Yukon and created guidelines on age, possession, and personal cultivation, among other areas. Yukon’s legislation embeds systems and processes to ensure legal access to cannabis while also providing opportunities for private business. By opening the temporary Cannabis Yukon retail store and our CannabisYukon.org e-commerce online store, the Corporation ensured the availability of non-medical cannabis to consumers in both Whitehorse and in the communities on October 17, 2018. This allowed the Corporation to open up access to legal cannabis while finalizing regulations and defining the processes of the Cannabis Licensing Board. Six months later, the first private retail store opened.

In October 2019, one year after opening, the Cannabis Yukon brick-and-mortar store closed, providing more opportunities for the private retail market. The commercial space has since been taken over by another private cannabis retailer. I would like to thank the Cannabis Yukon store staff, who helped introduce Yukoners to cannabis retail and guided consumers to make safer, legal cannabis choices. The Corporation, along with partnering government departments, continues to work to ensure Yukoners are informed about how to consume cannabis in a socially responsible manner, and the associated health effects.

Moving forward, the Corporation will continue to shift its focus towards being as effective and responsive as possible in its role as wholesale distributor, online retailer and regulator as the private sector expands the brick-and-mortar retail of cannabis. The Corporation will work closely with retailers to ensure cannabis sales are lawful, the illicit market is further reduced, and consumers have access to a variety of cannabis products.

We look forward to another busy year in 2020/21.

Sincerely,

Hon. John Streicker Minister responsible for Yukon Liquor Corporation

Yukon Liquor Corporation cannabis annual report 2019/2022

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Paul McConnell President, Yukon Liquor Corporation

David Sloan Chair, Cannabis Licensing Board

Letter of transmittal In 2019/20, the Yukon Liquor Corporation worked hard to support the growth of the legal, non-medical cannabis market in Yukon.

The territory’s cannabis legislation outlines a hybrid model for cannabis sales; the Corporation operates distribution and e-commerce sales, and supports the functioning of the private retail sector through established regulations that govern standard retail licensing. In addition, the independent Cannabis Licensing Board reviews and decides on private retail licence applications from potential retailers as they look to enter the market.

Together with its partners, the Corporation manages the safe and legal sale and consumption of cannabis to help protect youth and displace the illicit market. To help to reduce the harms associated with cannabis, the Corporation also supports a variety of social responsibility initiatives from Government of Yukon departments, Health Canada and a number of non-profit organizations.

This past year, the Corporation fully transitioned to its new role of wholesale distributor, e-commerce retailer and regulator, and strove to provide support to new licensees. The Corporation and Cannabis Licensing Board worked closely with five new private cannabis retail stores and together managed the submissions of 12 applications in total. The Corporation secured an agreement with an additional licensed producer in an effort to offer a more diverse range of cannabis products, including newly legalized edibles, topicals and extracts, and will secure more options as market demand and supply develops. Together with licensees, we continue to examine potential changes and adaptations that could be made to the Corporation’s way of working as the industry evolves.

We would like to acknowledge the dedication and efforts of the team at the Yukon Liquor Corporation, the Cannabis Licensing Board, and the Minister responsible. We would also like to thank all of our licensees for their hard work and close collaboration as we continue our journey together in this new and evolving industry.

Sincerely,

Paul McConnell President of Yukon Liquor Corporation

David Sloan Chair, Cannabis Licensing Board

Yukon Liquor Corporation cannabis annual report 2019/20 33

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April 2019Triple J’s Canna Space opens Whitehorse

August 2019Dawson City Cannabis opens in Dawson

September 2019Fire and Flower opens in Whitehorse

October 17, 2019Cannabis Yukon retail store closes

October 17, 2019Phase 2 products legalized

December 2019Pot Hole opens in Carmacks

December 2019Phase 2 products offered for sale in Yukon

February 2020The Herbary opens in Whitehorse

Tim

elin

e

Yukon Liquor Corporation cannabis annual report 2019/204

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Our vision, mission and valuesVisionOur commitment to service excellence, sustainable business practices, and social responsibility promotes economic opportunities and supports healthy Yukon communities.

MissionTo offer a variety of product choices to our customers while promoting safe, legal and socially responsible sale and consumption.

Our values

Excellence

We act with focus, dedication and purpose while operating in a fiscally and socially responsible manner.

Innovation

We achieve extraordinary results through empowerment and by working together for continuous improvement.

Integrity

We are proud and accountable for our actions and we honour our commitments.

Respect

We create a safe, inclusive, and positive organizational culture, which serves as the foundation for our success.

Yukon Liquor Corporation cannabis annual report 2019/20 5

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Annual report

April 1, 2018 to March 31, 2019

Yukon Liquor Corporation

Annual reporting Annual reporting is a requirement of the Cannabis Control and Regulation Act.The Corporation must submit a report to the Minister that contains the following:

u The nature and amount of business the Corporation conducted during the year;

u The assets and liabilities of the Corporation, including profits and losses to show the result of the year’s operations;

u Measures the Corporation has taken to reduce the risk of cannabis being diverted to the illicit market;

u Measures the Corporation has taken to facilitate responsible consumption of cannabis while not promoting cannabis; and

u Efforts the Yukon Liquor Corporation has made to enhance public awareness of the health risks associated with consumption of cannabis use; and,

u Information regarding the laws relating to cannabis in Yukon.

A copy of this annual report will be tabled at the next sitting of the Legislative Assembly.

Yukon Liquor Corporation cannabis annual report 2019/206

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David Sloan Chair

James Lindsay Member

John Farynowski Member

Shari Borgford Member

Mieke Leonard Vice-chair

About the Cannabis Licensing BoardThe first Cannabis Licensing Board members were appointed on January 16, 2019. The board operates at arm’s length from the Yukon Liquor Corporation and has independent decision-making authority as a quasi-judicial body.

The board is responsible for making cannabis licensing decisions, determining licence conditions, and holding hearings related to licence applications as per the Cannabis Control and Regulation Act. The board meets monthly, with additional meetings as required. The President responsible for administering the Yukon Liquor Corporation provides cannabis licensing application information to the board.

Find out more about the Cannabis Licensing Board members at yukon.ca/en/your-government/

boards-and-committees/ cannabis-licensing-board

Yukon Liquor Corporation cannabis annual report 2019/20 7

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Organizational structureThe Yukon Liquor Corporation is responsible for the purchase, distribution and responsible sale of cannabis products in Yukon. In 2019, the Corporation closed the Cannabis Yukon brick-and-mortar store to make way for the private retail market. The Cannabis Yukon e-commerce site continues to serve Yukoners needs online. The Corporation’s branches – Corporate Services; Operations, and Regulatory Services – are working to support the diversion of cannabis from the illicit market by providing Yukoners with direct access to non-medical cannabis, along with the information they need if they choose to consume, and how to do it responsibly.

Corporate Services The Corporate Services branch sets the strategic direction for the Corporation and supports the Operations branch in delivering on those strategic goals and managing front line business. The President’s office is accountable to the Minister responsible and Cabinet for the operation of the Corporation.

The President is responsible for administering the Cannabis Control and Regulation Act; managing the daily operations of the Corporation in accordance with the government’s legislation, regulations, policies and business plans; and, coordinating work with other Government of Yukon departments and organizations.

Human Resources provides leadership in talent management, including compensation and benefits, training and development, succession planning, employee relations and workplace diversity. It promotes a positive organizational culture and helps to develop and grow the Corporation’s human resources.

Finance and Information Management prepares budgets, financial reports, conducts accounting and treasury services, manages records, designs and assesses systems and controls. It is the lead contact for the annual audit conducted by the Office of the Auditor General of Canada and is also responsible for enterprise risk management.

Social Responsibility, Policy and Planning leads strategic planning and provides legislative and policy support services for the Corporation. This team manages corporate communications, web and digital channels and supports social responsibility initiatives in partnership with business and community organizations.

Yukon Liquor Corporation cannabis annual report 2019/208

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Regulatory ServicesProvides leadership in regulatory services including cannabis licensee education, inspection and monitoring for upcoming private retail stores. This unit ensures completeness of applications for the review of the Cannabis Licensing Board, administers all aspects of licensing services, and promotes compliance with the Cannabis Control and Regulation Act and regulations, and Liquor Act and regulations.

OperationsThe Operations branch manages the Corporation’s front line business.

Purchasing and logistics Responsible for the purchasing, pricing, and in-bound supply chain of product.

Sales and distributionCoordinates Cannabis Yukon e-commerce shipping in the territory and provides wholesale ordering services for private retail licensees.

Warehouse operations Manages all aspects of the central warehouse. It processes incoming shipments from licensed producers and prepares orders for the Cannabis Yukon e-commerce site. It also supports shipping wholesale cannabis products to retail licensees throughout Yukon.

Health and safetyIncludes the health & safety committee and emergency planning, to ensure the Corporation has the appropriate processes, procedures and tools in place to safeguard its employees, clients and products.

Yukon Liquor Corporation cannabis annual report 2019/20 9

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Edibles and concentrates$84,394102 KG

Business overviewSince the legalization of non-medical cannabis sales on October 17, 2018 the Yukon Liquor Corporation continues to:

u coordinate the cannabis supply chain from licensed producers to licensed retailers;

u develop and establish policies to support public health, protecting young persons from accessing cannabis and displacing the illicit market;

u develop and distribute educational materials and messaging on safer consumption;

u maintain and improve the e-commerce sales platform to ensure all Yukon communities have access to cannabis and safer consumption information; and

u engage with communities, First Nations governments, local stakeholders and the public on cannabis licensing.

During the 2019/20 fiscal year, the Yukon Liquor Corporation established a contract with an additional licensed producer, bringing the total number of licensed producers that the Corporation works with to nine. With a diversified portfolio the Corporation was able to sustain cannabis inventory throughout the year and was one of the first jurisdictions in Canada to offer edibles for sale.

Between April 1, 2019 and March 31, 2020, the Corporation purchased a total of $3.7 million worth of cannabis products. By the end of the fiscal year 2019/20, the Corporation was offering whole flower, milled flower, pre-rolled cannabis, oil, oil capsules, seeds, chocolates, mints, and vape pens and cartridges.

$4,863,403Total sales without GST

Sales by category

Online sales$24,824

Seeds$16,326540 seeds

Oil$461,153282 KG

Flower$4,301,530417 KG

Brick-and-mortar sales$1,287,131

Wholesales$3,551,448

Yukon Liquor Corporation cannabis annual report 2019/2010

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In the 2019/20 fiscal year the Yukon Liquor Corporation moved from being a brick-and-mortar cannabis retailer to working closely with an increasing number of licensees and managing e-commerce sales.

Operating expenses

0

200

400

600

800

1,000

1,200

Rent, utilitiesand maintenance

Other*

*Travel, communications, bank charges, office supplies, board honoraria, e-commerce support

Professionalservices

Depreciationand amortization

of assets

Thou

sand

s of

Can

adia

n do

llars

( $)

Salaries, wagesand benefits

1,076

173105 73

115

572

66 66129

1,160

2019/20

2018/19

Yukon Liquor Corporation cannabis annual report 2019/20 11

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Reduction of the illicit market The Yukon Liquor Corporation strives to reduce the illicit market through several means.With the opening of the first private retail store in April 2019, eight licences granted and a total of five retail locations open, Yukoners are able to access a legal, safe supply of cannabis as well as an array of products at a variety of price points. Yukoners know that legal products are sold with a stamp to ensure that they are easily recognizable.

To ensure that the cannabis is secure within the warehouse, and when transported to and from the warehouse, secure storage areas are maintained, and video surveillance cameras as well as handling procedures continue to be monitored.

All cannabis retail and warehouse staff who handle cannabis are required to have criminal record checks. All cannabis retail staff take a mandatory training course, which emphasizes not selling cannabis to persons who are intoxicated or underage, and checks are in place throughout the various sale and delivery methods (licensees, e-commerce, and Canada Post). Licensees must follow require-ments under the Cannabis Control and Regulation Act and regulations, as well as the Federal Cannabis Act and regulations, to keep cannabis safe and secure.

The Yukon Liquor Corporation regularly reports to Health Canada on Yukon cannabis sales and inventory, as part of the federal government’s seed-to-sale tracking requirements.

Applications for cannabis private retail need to include criminal record checks for applicants, plans for employees to take the BARS-Cannabis server training course, inventory management plans, secure transport of the cannabis from the Corporation, and details on burglar alarm and video surveillance systems. The members of the Cannabis Licensing Board rigorously review private retail applications and the board is able to impose additional conditions that they may decide are important when granting a licence.

In 2019/20, inspectors have conducted eight inspections of licensees to ensure their premises and operational conditions are in compliance. No fines or suspensions were required during this period.

Yukon Liquor Corporation cannabis annual report 2019/2012

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Social responsibilityThe Yukon Liquor Corporation continued to implement several campaigns throughout the year to facilitate responsible cannabis consumption, and enhance public awareness of the health risks associated with cannabis use.

On October 17, 2019, licensed producers could apply to Health Canada to be able to ship edibles, extracts and topicals to retailers. While no new regulations were required for these products in Yukon, the Corporation took steps to ensure that Yukoners and private cannabis retailers understood the new products, their effects and risks.

Responsible consumption initiatives in 2019/20:

u Implemented the Check 30 initiative in private retail stores. This initiative encourages retail staff to ask for ID for anyone who looks under 30 years of age.

u Distributed French and English Cannabis Talk Kit brochures, created by Drug Free Kids Canada, in all Yukon communities, in all Corporation Liquor Stores. The information is designed to be a guide for parents or guardians on how to discuss cannabis with teenagers.

u Promoted Government of Canada’s social media posts through the Corporation’s Facebook page on the risks of cannabis, intoxicated driving and safer consumption.

u Updated Cannabis 101 and Keep it Legal pamphlets to include information about phase two: edibles, topicals and extracts.

u Participated in Mothers Against Drunk Driving red ribbon campaign, with the Minister and other Corporation staff attending check stops.

Yukon Liquor Corporation cannabis annual report 2019/20 13Yukon Liquor Corporation cannabis annual report 2019/20 13

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Health initiatives:

u Ensured that Health Canada inserts with information about the effects of THC and how to lower the risks of cannabis use accompanied both physical retail and online purchases.

u Ensured the updated French and English cannabis information brochure Cannabis 101 was available to private licensees and in all Corporation Liquor Stores. This content explains the risks of cannabis use on health, how to keep cannabis use legal and safer consumption methods.

u Maintained and updated three sections in CannabisYukon.org on (1) Cannabis and Your Health, (2) Keeping it Legal and (3) Cannabis 101. The content explains the risks of cannabis use on health, how to keep cannabis use legal and safer consumption methods.

u Continued to distribute Canada’s Lower-Risk Cannabis Use Guidelines (LRCUG) brochure and tear sheets in the Corporation’s Liquor Stores and made available to private licensees French and English. This material was created by the Canadian Research Initiative in Substance Misuse to help people reduce the health risks of cannabis use. The brochure was also published on CannabisYukon.org and Yukon.ca.

u Regular posts on cannabis use risks on the Corporation’s Facebook page.

u Worked with the Corporation’s inspectors to ensure licensees were following Yukon and Health Canada regulations.

u Updated the mandatory Be A Responsible Server-Cannabis (BARS-C) online training with phase two regulations and products.

Health and Social Services Report

The Department of Health and Social Services monitors health statistics related to the consumption of cannabis and its effects on Yukoners, and the appended report from Health and Social services provides a snapshot of the situation prior to legalization. As the Yukon Liquor Corporation continues efforts to divert use of the illicit market by providing Yukoners with direct access to legal cannabis along with information they need to consume responsibly; Health and Social Services will monitor the effects so evidence-based decision making can occur.

5-Year Review

As per the Cannabis Control and Regulation Act there will be a review of the Act at least every five years. The Yukon Liquor Corporation is working with its partners at the Department of Health and Social Services to prepare for the five-year review by ensuring that the data required for such a review is collected for future consideration.

Yukon Liquor Corporation cannabis annual report 2019/2014

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Future outlook Activities that the Corporation will undertake in 2020/21 include:

Education:

While conducting enforcement initiatives in communities, Compliance Officers will continue to educate the public by providing information about the new Act and Regulations to help support a smooth transition for current licensees.

Support and update BARS-C training to continue to provide up to date information about cannabis.

Continue to promote Check 30 program in private retail stores.

Update the Cannabis and Your Health, Keeping it Legal and Cannabis 101 sections of CannabisYukon.org with new information.

Continue to distribute brochures and information pamphlets from other organizations, such as Canada’s Lower-Risk Cannabis Guidelines and Cannabis Talk Kit to raise awareness of the risks of cannabis consumption.

Support cannabis harm reduction initiatives such as safer consumption and continuing to develop communications on the dangers of mixing cannabis and alcohol.

Promote Government of Canada social media posts on the risks of cannabis, impaired driving and harm reduction on the Corporation’s Facebook page.

Publish weekly posts on the risks associated with cannabis use on the Corporation’s Facebook page.

Continue to distribute the information sheet on cannabis and residential tenancies in all Corporation liquor stores, and at interested private retailers in both French and English.

Retail:

Supporting private retail by offering a variety of products that meet consumer demands.

Working with industry to continually improve the cannabis supply chain in Yukon.

Regulatory:

Continue with a risk-based inspection approach to ensure effective use of resources.

Yukon Liquor Corporation cannabis annual report 2019/20 15

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Disclaimer:

With the Federal Government’s decision to legalize cannabis in October 2018, the Government of Yukon has committed to measuring whether the change in cannabis policy is having the intended effects to protect public health and safety. Improved surveillance for cannabis use and related health and justice statistics is needed to monitor the effects cannabis has in Yukon and to inform evidence- based policy decisions and for ongoing evaluation of cannabis regulations.

1 No new data available.2 High sampling

variability associated with the data quality indicator. Estimates should be interpreted with caution.

Health Indicator Collection for 2018/19 Fiscal:

Indicator Category Sub-category Data Source Results

Figu

re #

Patterns of use

% of population who used cannabis in past 12 months

Canadian Community Health Survey (CCHS) (Ages 12+)

20.6% (2015/16)

Health Behavior of School-aged Children Survey (HBSC) (Grades 6-10)

14.7% (2018) 1

% of population who use daily in the last 12 months

CCHS (Ages 12+)

5%1, 2 (2015/16)

% of population that use 20 days or more times in the last 30 days

HBSC (Grades 6-10)

2.4% (2018) 2

Age of initiation (�categories�are�≤11,�12,� 13,�14,�15�and�≥16)

HBSC (Grades 6-10)

≤11 4.4% (2018)

3

12 4.2% (2018)

13 7.6% (2018)

14 9.1% (2018)

15 7.8% (2018)

≥16 1% (2018)

Motor Vehicle Collisions & Fatalities

# and % of motor vehicle collisions with driver having cannabis detected in their system (fatal) in past year

Coroner Data >5

# and % of motor vehicle collisions with driver having cannabis detected in their system (non-fatal) in past year

National Collision Database Not available

Yukon Department of Health and Social Services Report on Cannabis

Yukon Liquor Corporation cannabis annual report 2019/2016

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Health Indicator Collection for 2018/19 Fiscal continued…

Indicator Category Sub-category Data Source Results

Figu

re #

Overdose# of emergency department visits (ED)/hospitalizations for poisonings

Hospital Data

ED visits: 5 (2013-2018)

Hospitalizations: < 5 (2013-2018)

Emergency-department visits/hospitalizations

# of cannabis-associated emergency department visits Hospital Data

86 (2018) 5

# of hospitalizations associated with cannabis use Hospital Data

23 (2018) 6

Pregnancy and reproductive health

% of women who used cannabis during pregnancy

Hospital Data - BC Antenatal form

No electronic data available

Market/Economic Information

Amount ($) of sales of cannabis from licensed producers/licit sources through retail and e-commerce

Yukon Liquor Corporation

Reported by YLC

Volume of sales (by gram) through retail and e-commerce

Yukon Liquor Corporation

Reported by YLC

Type(s) of cannabis products being sold in Yukon through e-commerce, retail and wholesale to licensees

Yukon Liquor Corporation

Reported by YLC

Number of licensed cannabis outlets

Yukon Liquor Corporation

Reported by YLC

Crime & Law Enforcement

# (and rate per 100,000) of illicit possession charges for cannabis for youth (12-17 years)

Statistics Canada (Incident-based crime statistics)

0 (0 per 100,000) (2018) 7, 8

# (and rate per 100,000) of illicit possession charges for cannabis 18 years and over

Statistics Canada (Incident-based crime statistics)

0 (0 per 100,000) (2018) 9, 10

# (and rate per 100,000) of distribution, sale and importation/exportation charges for cannabis

Statistics Canada (Incident-based crime statistics)

0 (0 per 100,000) (2018)

# (and rate per 100,000) of production charges for cannabis

Statistics Canada (Incident-based crime statistics)

0 (2017)

Yukon Liquor Corporation cannabis annual report 2019/20 17

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Source: HBSC (2018)

Patterns of use:

Figure 1: Frequency of cannabis use by grade 6-10 students in Yukon in the past 12 months, 2018

>=2010-196-93-51-2Never0

10

20

30

40

50

60

70

80

90

100

Frequency of use

Perc

enta

ge o

f res

pond

ants

85.3%

3.4% 1.8% 1.3% 2.2% 6%

Figure 2: Frequency of cannabis use by grade 6-10 students in Yukon in the past 30 days, 2018

>=2010-196-93-51-2Never0

10

20

30

40

50

60

70

80

90

100

Frequency of use

Perc

enta

ge o

f res

pond

ants

88.7%

3.8% 1.3% 1.0% 1.9% 0.9%

Source: HBSC (2018)

Yukon Liquor Corporation cannabis annual report 2019/2018

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Figure 3: Age�that�grade�9�and�10s�reported�first�using�cannabis,�2018

≥1615141312≤11Never0

10

20

30

40

50

60

70

Age of first cannabis use

Perc

enta

ge o

f res

pond

ants

66.0%

4.4% 4.2%7.6% 7.8%

1.0%

9.1%

Figure 4: How�difficult�do�you�think�it�would�be�for�you�to�get�cannabis?

Very difficult Fairly difficult Fairly easy Very easy I don’t know0

5

10

15

20

25

30

Difficulty getting cannabis

Perc

enta

ge o

f res

pond

ants

9.8%7.2%

26.1% 26.3%28.1%

Source: HBSC (2018)

Source: HBSC (2018)

Yukon Liquor Corporation cannabis annual report 2019/20 19

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Notes for patterns of use: u The CCHS drug module in 2015/16 found that Yukoners were more likely

to consume cannabis than the participating provinces. For example: In comparison to Ontario and Alberta residents, Yukoners were almost twice as likely to report having used cannabis in the past 12 months.

u Over 20% of Yukoners were estimated to have consumed cannabis at some point, compared to about 11% of those in Ontario and Alberta.

u Nunavut residents, however, were the most likely of the selected jurisdictions to report having used cannabis, with an estimated 39.3% reporting cannabis use in the past year.

Motor vehicle collisions:Notes: At the time that this report was produced the National Collision Database had not been updated to include collisions involving cannabis (it only included illicit substances, which includes cannabis and all other drugs). Therefore, we are not able to draw any conclusions about non-fatal cannabis-related collisions. We do know that Yukon has a high rate of impaired driving incidents, which would include both drug-impaired and alcohol-impaired driving (incidents include: impaired driving causing death, impaired driving causing bodily harm, impaired operation of a vehicle and failure to submit a test). In 2015, there were 453 impaired driving incidents in Yukon. This corresponds to the second highest rate of impaired driving incidents in Canada at 1,210 per 100,000 population (the Canadian rate overall was 201 per 100,000 population).iii

Yukon Liquor Corporation cannabis annual report 2019/2020

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Hospital indicators:

Figure 5: Number of emergency department visits associated with cannabis use in Yukon, 2014-2018

0

10

20

30

40

50

60

70

80

90

100

2014 2015 2016 2017 2018

Year

Num

ber o

f em

erge

ncy

room

vis

its

2838 40

53

86

Emergency Room Visit Notes:

u In 2018, 86 emergency department visits made for reasons associated with cannabis during this timeframe 43% (37) were by females, and 57% (49) were by males.

u In 2018, 37% (32) of cannabis associated emergency department visits were for people under the age of 25. This is an important age group to monitor since they are most impacted by the negative effects of cannabis use and report using cannabis more than older populations.

Source: HBSC (2018)

Hospitalization Notes:

u In 2018, of 23 hospitalizations associated with cannabis during this timeframe 43% (10) were for females, 57% (13) were males.

u 30% (7) of hospitalizations that include cannabis related diagnoses were for people under the age of 25.

Source: Hospital Administrative data (DAD)

Figure 6: Number of hospitalizations associated with cannabis use in Yukon, 2014-2018

0

5

10

15

20

25

30

35

2014 2015 2016 2017 2018

Year

Num

ber o

f hos

pita

lizat

ions

17

22 23

29

23

Yukon Liquor Corporation cannabis annual report 2019/20 21

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Crime and law enforcement:

Figure 7: Total youth (12-17) charged in Yukon for possession of cannabis in 2014-2018

2017201620152014 20180.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Year

Num

ber o

f you

th c

harg

ed

3

0 0 0 0

Figure 8: Youth (12-17) charged for possession of cannabis in 2014-2018 (rate per 100,000 people)

0

20

40

60

80

100

120

140

2017201620152014 2018

Year

Rat

e pe

r 100

,000

peo

ple 120.97

0 0 0 0

123.96

96.02

79.41

Canada

Yukon

66.77

2.78

Source: Statistics Canada ( Incident-based crime statistics)

Yukon Liquor Corporation cannabis annual report 2019/2022

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Figure 9: Adults charged (18+) for possession of cannabis in 2014-2018

2017201620152014 20180

5

10

15

20

25

Year

Num

ber o

f peo

ple

char

ged

2018 18

13

0

Figure 10: Adults charged (18+) for possession of cannabis in 2014-2018 (rate per 100,000 people)

0

10

20

30

40

50

60

70

80

2017201620152014 2018

Year

Rat

e pe

r 100

,000

peo

ple

68

60.3758.92

42

0

75.59

66.09

54.27

Canada

Yukon41.21

0.32

Yukon Liquor Corporation cannabis annual report 2019/20 23

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i Maslov, A., Fergusion, M. & Lawrence, A. (2016). Cannabis performance metrics for policy consideration: what do we need to measure. Retrieved from https://www.researchgate.net/publication/308765615_Cannabis_Performance_Metrics_for_ Policy_Consideration_What_Do_We_Need_to_Measure

ii Statistics Canada. (2016). Impaired driving in Canada, 2015. Retrieved from https://www150.statcan.gc.ca/n1/pub/ 85-002-x/2016001/article/14679-eng.htm

iii Statistics Canada. (2016). Table 1.1 Impaired driving incidences, by type of offence and by province or territory, 2015. Retrieved from https://www150.statcan.gc.ca/n1/pub/85-002-x/2016001/article/14679/tbl/tbl1-1-eng.htm

Yukon Liquor Corporation cannabis annual report 2019/2024

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Statement of financial results

Yukon Liquor Corporation

Page 28: Annual report - Yukon · 2020. 10. 13. · In 2019/20, the Yukon Liquor Corporation worked hard to support the growth of the legal, non-medical cannabis market in Yukon. The territory’s

YUKON LIQUOR CORPORATION

(CANNABIS DISTRIBUTOR CORPORATION FUND)

STATEMENT OF FINANCIAL RESULTS

Statement of Financial Position

as at March 31

2020 2019(in thousands of Canadian dollars)

ASSETS

CURRENTCash $ 1,115 $ 1,436Accounts receivable 2 -Inventories 676 505

1,793 1,941

PROPERTY, PLANT AND EQUIPMENT (Note 1) 197 332

INTANGIBLE ASSETS (Note 2) 22 45

$ 2,012 $ 2,318

LIABILITIES AND EQUITY

CURRENTAccounts payable and accrued liabilities $ 721 $ 587Deferred revenue 15 -Due to Government of Yukon 370 474Deferred Government Grant 181 375

1,287 1,436

EQUITY 725 882

$ 2,012 $ 2,318

Through Order-in Council 2018/107 of the Cannabis Control and Regulation Act, the Yukon LiquorCorporation is designated as the distributor corporation, to act as the principal supplier of cannabis forsale in the Yukon.

A qualified audit opinion with an inventory count scope limitation, was expressed on the Yukon LiquorCorporation's financial statements by the Auditor General of Canada. A copy of these full financialstatements, including the audit opinion, is available on their website.

Yukon Liquor Corporation cannabis annual report 2019/2026

Page 29: Annual report - Yukon · 2020. 10. 13. · In 2019/20, the Yukon Liquor Corporation worked hard to support the growth of the legal, non-medical cannabis market in Yukon. The territory’s

YUKON LIQUOR CORPORATION

(CANNABIS DISTRIBUTOR CORPORATION FUND)

STATEMENT OF FINANCIAL RESULTS

Statement of Comprehensive Income

for the year ended March 31

2020 2019(in thousands of Canadian dollars)

REVENUES Revenue $ 4,863 $ 2,030

COST OF GOODS SOLDPurchases 3,503 1,210Postage and freight 72 77

3,575 1,287

GROSS PROFIT 1,288 743

OTHER INCOME Government grant 195 2,600Fees, permits and licenses 32 6Miscellaneous 30 -

257 2,606

EXPENSESSalaries, wages and benefits 1,076 1,160Depreciation of property, plant and equipment 151 550Professional services 105 129Rent, utilities and maintenance 73 66Other 50 16Travel and communications 33 20Interest and bank charges 30 6Amortization of intangible assets 22 22General and office supplies 2 24

1,542 1,993

INCOME FROM OPERATIONS 3 1,356

OTHER INCOME Gain on disposal of property, plant and equipment 168 -

COMPREHENSIVE INCOME $ 171 $ 1,356

Yukon Liquor Corporation cannabis annual report 2019/20 27

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YUKON LIQUOR CORPORATION

(CANNABIS DISTRIBUTOR CORPORATION FUND)

Schedules to Financial Statements

for the year ended March 31

1. Property, plant and equipment

(in thousands of Canadian dollars)

2019 2020Cost Balance Additions Disposals Balance

Buildings $ 107 $ - $ - $ 107Leasehold improvements 651 1 652 -Furniture and office equipment 5 - 5 -Operating equipment 51 21 14 58Systems development 40 32 - 72Systems equipment 28 4 4 28

$ 882 $ 58 $ 675 $ 265

2019AccumulatedDepreciation 2020

Accumulated Depreciation Balance Depreciation on Disposals Balance

Buildings $ 5 $ 6 $ - $ 11Leasehold improvements 521 108 629 -Furniture and office equipment 1 - 1 -Operating equipment 10 11 2 19Systems development 8 19 - 27Systems equipment 5 7 1 11

$ 550 $ 151 $ 633 $ 68

Net book value 2020 2019

Buildings $ 96 $ 102Leasehold improvements - 130Furniture and office equipment - 4Operating equipment 39 41Systems development 45 32Systems equipment 17 23

$ 197 $ 332

2. Intangible assets 2020 2019

(in thousands of Canadian dollars)

Web development $ 67 $ 67Accumulated amortization (45) (22)

$ 22 $ 45

Yukon Liquor Corporation cannabis annual report 2019/2028

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Page 32: Annual report - Yukon · 2020. 10. 13. · In 2019/20, the Yukon Liquor Corporation worked hard to support the growth of the legal, non-medical cannabis market in Yukon. The territory’s

Yukon Liquor Corporation

9031 Quartz Road, Whitehorse Yukon Y1A 4P9

Phone: 867-667-5245 Fax: 867-393-6306 Toll-free: 1-800-661-0408 extension 5245

Email: [email protected]

@YukonLiquorCorp

/yukonliquorcorp